Study On The Influence Of The Financial Expenditure On The Income Gap Between Urban And Rural Residents In Guangxi

Along with the reform and open policy, our country economy obtained the swift and violent development, but some problems also subsequently appeared. Among them, the urban and rural residents income distribution gap has been widening is the most critical issues. Guangxi belongs to the poverty of the west, and all aspects of development is relatively backward, ethnic population composition is complicated, with the present situation of gradually widened distribution between the urban and rural residents. how to solve this problem has aroused a heated discussion in the district.According to the historical experience and the study, we can find that only relying on market forces to narrow the gap between urban and rural residents income is certain impossible, it can only be effectively by adding non-market factors, the government intervention, to take corresponding policies from the top height, adjusting the social interest income and distribution, to balance the effect of income of all levels. And one of the most commonly used means is to use the fiscal expenditure policy to affect the residents’ income distribution directly or indirectly. Therefore, this article means to explore the effect of Guangxi fiscal expenditures on the income gap between urban and rural areas in Guangxi. On the basis of the Guangxi 14 prefecture-level practical experience data, using the method of empirical study, separately from the total amount and structure of different angles, to make sure the correlation between Guangxi fiscal expenditures and urban and rural residents’income distribution gap. With the panel data model and selected the data in 2004-2014 from 14 cities which in charge of Guangxi, studied the relationship of the fiscal expenditure and urban-rural income gap. It come through these conclusions:no matter the whole fiscal expenditure nor the fiscal subentry expenditure can reduce the income gap of the people in urban and rural areas; the expenditure on Farm, Forestry and water affairs makes the biggest contribution while the Education expenditure does the smallest. Thus, this paper analyzes the reasons for this result, and according to this conclusion and the reasons, offer the policy recommendations of reducing the income gap between urban and rural residents for the actual situation in Guangxi District, from the perspective of financial expenditure.